Surging Dollar to Boost Europe, Japan as U.S. Slows, IMF Says

14-Apr (Bloomberg) — The strengthening dollar is boosting growth in the euro area and Japan while taking some steam out of the U.S. recovery, the IMF said in its latest forecast.

The International Monetary Fund left its projection for global growth in 2015 unchanged from three months ago at 3.5 percent, according to its World Economic Outlook released Tuesday. Underneath the stable forecast, however, the IMF depicts a global economy being reshaped by swings in currency markets and the drop in oil prices.

The Washington-based crisis lender cut its U.S. expansion forecast by 0.5 percentage point to 3.1 percent, still the fastest among major developed economies. The Japan growth outlook increased to 1 percent from 0.6 percent and the euro area is projected to expand 1.5 percent as weakening currencies provide a “welcome boost,” the IMF said.

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PG View: The dollar has been on the rise for 4-years now and hasn’t really done anything to improve the prospects for Japan and Europe. In fact you could argue that the dollar’s rise has been more a story of Japan and Europe tanking their currencies…